Brexit Deal Could Accelerate Interest Rates – What’s Next for GBP/USD?

Posted Friday, November 2, 2018 by
Arslan Butt • 1 min read

Yesterday, the Bank of England intimated there could be a faster pace of interest rate hikes if the UK manages a smooth exit from the European Union. Although the Bank held rates constant at 0.75% this month, its latest estimates hint that rates could accelerate to 1.5% over the next three years.

In response, the GBP/USD took a dramatic bullish turn. On the 2-hour chart, the cable violated the double top resistance level of $1.2915 to enter a new bullish range. The pair is likely to face a strong resistance near $1.3035 which is extending by an intraday high of November 1. The bullish breakout can extend bullish rally until $1.3065 today.

GBP/USD – Technical Levels

Support Resistance
1.2878 1.3075
1.276 1.3154
1.2562 1.3351
Key Trading Level: 1.2957

GBP/USD – Market Sentiment

Weekly – Stong Buy
Daily – Strong Buy
Hourly – Buy

GBP/USD – Trade Plan

Today, the idea is to stay bullish above $1.2950 to target $1.3025 and $1.3050.

Good luck!

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Arslan Butt is our Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
Related Articles
eToro announces a significant cut in spreads on cryptoassets to increase awareness of the potential of crypto and blockchain more broadly
SPONSORED
Comments

Leave a Reply

avatar
  Subscribe  
Notify of